BRIC

BRIC mutual funds and ETFs invest in a wide range of asset... BRIC mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Brazil, India, Russia, and China (the so-called BRIC countries). South Africa is sometimes included in this grouping as well. Additionally, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). BRIC, which range from emerging markets to frontier markets, are often thought of as a bloc in terms of their economic development (though some critics believe this grouping isn’t appropriate, given the differences between the various countries). The acronym was coined in 2001 by Goldman Sachs economist Jim O’Neill. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. Many investors seek exposure to the BRICs, but they are not appropriate for conservative-minded investors, who tend to prefer owning developed market securities. BRIC investments may carry heightened geopolitical risk. For example, after Russia’s invasion of Ukraine in early 2022, the Russian stock market plunged and many funds and ETFs with Russian investments either lost money or decided to divest from the country entirely. Last Updated: 04/19/2024 View more View less

BRIC mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Brazil, India, Russia, and BRIC mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Brazil, India, Russia, and China (the so-called BRIC countries). South Africa is sometimes included in this grouping as well. Additionally, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). BRIC, which range from emerging markets to frontier markets, are often thought of as a bloc in terms of their economic development (though some critics believe this grouping isn’t appropriate, given the differences between the various countries). The acronym was coined in 2001 by Goldman Sachs economist Jim O’Neill. The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. Many investors seek exposure to the BRICs, but they are not appropriate for conservative-minded investors, who tend to prefer owning developed market securities. BRIC investments may carry heightened geopolitical risk. For example, after Russia’s invasion of Ukraine in early 2022, the Russian stock market plunged and many funds and ETFs with Russian investments either lost money or decided to divest from the country entirely. Last Updated: 04/19/2024 View more View less